Industrial Relations A Journal of Economy and Society· 2026Q1
Trade Exposure and the Decline in Collective Bargaining: Evidence From Germany
- 1citations
- Q1SCImago
- 2026year
Short summary
Rising import exposure from China and Eastern Europe explains 13% of the decline in industry-wide bargaining coverage in German plants from 1996-2008, with smaller plants being more affected.
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Key points
- Higher import exposure from China/Eastern Europe increased the likelihood of German plants exiting industry-wide bargaining agreements (1996-2008).
- Rising trade exposure accounts for approximately 13% of the decline in industry-wide bargaining coverage.
- Export exposure did not have a significant average effect on bargaining coverage.
- The negative impact of import exposure was stronger for small and medium-sized plants.
- Large plants and those with works councils were more likely to maintain participation, especially with export opportunities.
AI-generated from the title and abstract; the full text is not read.
Abstract
ABSTRACT We analyze how rising trade exposure from China and Eastern Europe affected collective bargaining coverage in German plants from 1996 to 2008. Using cross‐industry variation in trade exposure and instrumenting with trade flows from other high‐income countries, we find that higher import exposure increased the likelihood that plants exited industry‐wide bargaining agreements, while export exposure had no average effect. Overall, rising trade exposure explains about 13% of the decline in industry‐wide bargaining coverage. The import effect is stronger for small and medium‐sized plants, while export opportunities help stabilize participation among large plants and those with works councils.
The authors' abstract, as published at the source. Industrial Relations A Journal of Economy and Society, 2026 · DOI ↗
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Field: General Economics, Econometrics and Finance
General Economics, Econometrics and FinanceEconomics, Econometrics and Finance